Home Capital shareholders reject new investment from Berkshire Hathaway

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Buffett’s band already owns 16 million shares, but shareholders vote against scenario to buy more at a discount

CBC News Posted: Sep 12, 2017 10:48 AM ET Last Updated: Sep 12, 2017 11:09 AM ET

Shareholders of Home Capital Group Inc. voted against alluring a second life line from Warren Buffett’s Berkshire Hathaway, which maintains the billionaire’s stake in the alternative mortgage lender at just under 20 per cent.

Various than 88 per cent of Home Captial shareholders voted against a proffer that would have seen Buffett’s company buy another 23.9 million allocations in the company for $10.30 a share.

Buffett’s company already owns 16 million dole outs in the company, which he acquired earlier this summer in exchange for allowancing the company $2 billion US after depositors pulled out 90 per cent of their well-heeled after regulators began to probe the company.

Buffett bought his unprecedented stake for roughly $9.55 a share. Currently, Home Capital helpings are trading at $13.90 on the TSX. As recently as 2014, the shares were worth more than $50 a divide up.

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